Spring Meetings 2016: The Managing Director's Interview on the Global Economy The Managing Director's Interview on the Global Economy imf seminars event LOCATION: George Washington University, Lisner Auditorium TUNE IN FOR THE LIVE WEBCAST ON Thursday, April 14 AT 12 00 PM more seminars> Overview Christine Lagarde, Managing Director of the IMF, will discuss key issues in the global economy with Stephen Sackur of the BBC’s HARDtalk. Global growth in 2015 remains modest and uneven, as important transitions weigh on the outlook. These transitions include asynchronous monetary policy in advanced economies, rebalancing in China, and the end of the global commodity boom. Recent data suggest that global growth is likely to remain modest in 2016, with a continuation of the modest recovery in advanced economies and still-difficult conditions in several emerging and developing economies, particularly commodity exporters. If the transitions are not successfully navigated, global growth could be derailed. Indeed, in an environment of significantly lower commodity prices, reduced private capital flows to emerging markets, and higher financial market volatility, downside risks to the outlook remain elevated, particularly for emerging and developing economies.

To secure a strong and durable recovery, policies need a decisive upgrade. This session will be broadcast (at a later date); audience members should be in their seats no later than 11:55 a.m. when the doors will close. No filming or flash photography during this seminar. IMF: Definition, Chief, Functions, Members, Role By Kimberly Amadeo Updated September 08, 2016 Definition: The IMF (International Monetary Fund) is an organization of 189 member countries. It stabilizes the global economy in three ways. First, it monitors global conditions and identifies risks. Second, it advises its members on how to improve their economies. Third, it provides technical assistance and short-term loans to prevent financial crises. The IMF's goal is to prevent these disasters by guiding its members. These countries are willing to give up some of their sovereign authority to achieve that aim. (Source: " How the IMF Promotes Financial Stability ," March 10, 2016.) IMF Chief The IMF chief has been Managing Director Christine Lagarde since July 5, 2011. She is Chairman of the 24-member Executive Board.

It appointed her to a second renewable five-year term in February 2016 It is effective July 5, 2016. The Managing Director is the chief of the IMF’s 2,700 employees from 147 countries. She supervises four Deputy Managing Directors. (Source: " IMF Reappoints Lagarde ," February 19, 2016.) The IMF Governing Board sets direction and policies. Its members are the finance ministers or central bank leaders of the member countries. They meet each year in conjunction with the World Bank . The International Monetary and Financial Committee (IMFC) meets twice a year. It reviews the international monetary system and makes recommendations. (Source: " IMF Governance Structure .") Functions Survey Global Conditions. The IMF has the rare ability to look into and review the economies of all its member countries. As a result, it has its finger on the pulse of the global economy better than any other organization. It produces a wealth of analytical reports thanks to that role. It provides the World Economic Outlook , the Global Financial Stability Report , and the Fiscal Monitor each year. It also delves into regional and country-specific assessments. It uses this information to determine which countries need to improve their policies.

The IMF can identify which ones threaten global stability. The member countries have agreed to listen to the IMF's recommendations. They want to improve their economies and remove these threats. Advise Member Countries. Since the Mexican peso crisis of 1994–95 and the Asian crisis of 1997–98, the IMF has taken a more active role to help countries prevent financial crises. It develops standards that its members should follow. For example, members agree to provide adequate foreign exchange reserves in good times. That helps them increase spending to boost their economies during recessions . It reports on members countries' observance of these standards. It also issues member country reports that investors use to make well-informed decisions. That improves the functioning of financial markets . The IMF encourage sustained growth and high living standards. That's the best way to reduce members' vulnerability to crises. Provide Technical Assistance and Short-term Loans. The Fund provides loans to help its members tackle balance of payments problems, stabilize their economies, and restore sustainable growth . Since the IMF does lend money, it is often confused with the World Bank . The Bank lends money to developing countries for specific projects that will fight poverty. Unlike the World Bank and other development agencies, the IMF does not finance projects.

Traditionally, most IMF borrowers were developing countries . They had limited access to international capital markets due to their economic difficulties. An IMF loan signals that a country's economic policies are on the right track. That reassures investors and acts as a catalyst for attracting funds from other sources. That shifted in 2010. The eurozone crisis prompted the IMF to provide short-term loans to bail out Greece . That was within the IMF's charter since it prevented a global economic crisis. Members Rather than listing all 189 members , it's easier to list the countries that are not. The seven countries (out of a total of 196 countries) that are not IMF members are: Cuba, East Timor, North Korea, Liechtenstein, Monaco, Taiwan, Vatican City. The IMF has 11 members that are not sovereign countries: Anguilla, Aruba, Barbados, Cabo Verde, Curacao, Hong Kong, Macao, Montserrat, Netherlands Antilles, Sint Maarten, Timor-Leste. Members do not receive equal votes. Instead, they have voting shares based on a quota. The quota is based on their economic size. If they pay their quota, they receive the equivalent in voting shares.

The number of voting shares was updated in 2010. That gave emerging market members more voting authority. Here are the Member Quotas and Voting Shares . Role The role of the IMF has increased since the onset of the 2008 global financial crisis . In fact, an IMF surveillance report warned about the economic crisis but was ignored. As a result, the IMF has been called upon more and more to provide global economic surveillance. It's in the best position to do so because its requires members to subject their economic policies to IMF scrutiny. Member countries also committed to pursuing policies that are conducive to reasonable price stability. They agree to avoid manipulating exchange rates for unfair competitive advantage . History In 2011, the IMF was rocked by a sex scandal involving its Executive Director, Dominique Strauss-Kahn. Polcie arrested him on allegations he sexually assaulted a hotel maid. Although the charges were subsequently dropped, he resigned. Many emerging market members argued that it was time for a Director to come from one of their countries. That reflects the growing economic clout of these countries. They proposed many excellent candidates.

They included: Singapore Finance Minister Tharman Shanmugaratnam, former Turkish Economic Minister Kemal Dervis and India's Montek Singh Ahluwalia, a former IMF director. Instead, France replaced Strauss-Kahn with Lagarde, the country's respected Finance Minister. The IMF was created at the Bretton Woods conference that sought to rebuild Europe after World War II. Its goal was to help countries maintain the value of their currencies. The planners wanted to avoid the trade barriers and high-interest rates that helped cause the Great Depression . Continue Reading International Monetary Fund (IMF) - International Monetary Fund (IMF) Basic facts The International Monetary Fund (IMF) is an international financial institution with headquarters in Washington, D. C., USA. It was established by 45 countries (including the former Czechoslovakia) at an international conference in July 1944 in Bretton Woods, USA. The IMF formally started its activity on 27 December 1945 when 29 countries signed the Articles of Agreement. The IMF currently has 189 members.

Goals of the institution to promote international monetary cooperation and facilitate a balanced growth of international trade to promote exchange stability, to maintain exchange agreements among members, and to avoid competitive exchange depreciation to assist in the establishment of a multilateral system of payments in respect of current transactions between members and in the elimination of foreign exchange restrictions which hamper the growth of world trade to make the general resources of the IMF temporarily available to member countries, under adequate safeguard, to correct maladjustments in their balance of payments. The IMF (unlike the World Bank) provides loans only for overcoming problems following from the maladjustment of the balance of payments which is often the consequence of various deformations in the economic system, either of structural nature or due to a wrong macro-economic policy. The IMF provides always only temporary financial help. IMF bodies The Board of Governors is the highest decision-making body of the IMF. It consists of one Governor and one Alternate for each member country. The Board of Governors makes all relevant decisions on IMF activities. The Board of Governors normally meets once a year (at Annual Meetings of the IMF and the World Bank Group). The Board of Governors has delegated many of its powers to the Executive Board which is its permanent executive body.

The International Monetary and Financial Committee (IMFC) meets twice a year to assess key problems of the international monetary system. Until September 1999 it worked as an Interim Committee. The Development Committee is a joint committee of the Boards of Governors of the IMF and the World Bank. Its task is to advise and to submit reports to Governors of member states on all questions related to developing countries. The Executive Board consists of 24 Directors. It deals with a wide range of political, operative and administrative questions, including surveillance over the monetary policy of member countries, providing financial help by the IMF to member countries and solving system problems of global economy. The Managing Director is the Chairman of the Executive Board and also the head of the IMF staff. She/he is elected for a period of 5 years and can be re-elected several times. Since 25 July 2011 Christine Lagarde (France) has been the Managing Director of the IMF. SDR currency The SDR (Special Drawing Rights) was created as an artificial currency unit in July 1969. It serves as an international reserve asset and as a unit of account. It serves only to IMF member states and some other designated institutions (e.g.

the World Bank and the Bank for International Settlements). The SDR currently consists of a basket of 5 currencies (USD, EUR, JPY, GBP, CNY). Member quotas and voting rights The basic element of financial and organisational relations of a member country to the IMF is the member quota(expressed in SDR) which is determined on the basis of the economic position of the member country towards other IMF members. The member quota determines its maximum financial commitment to the IMF; it determines the share of a member country in the SDR allocation and the amount of money a country can receive from the IMF. The number of member votes depends on the size of the member quota. These votes determine the voting right of a member country at various policy and operative decisions of the IMF. The Slovak Republic and IMF The Czechoslovak Republic (CSR) was one of the founding members of the IMF, and in 1954 its membership was interrupted. The Czechoslovak Federative Republic (CSFR) renewed its IMF membership on 20 September 1990 by signing the Articles of Agreement (Act No. 500/1992).

In connection to the split of Czechoslovakia into two independent republics, both countries acquired succession in the IMF since 1 January 1993. Through a division of liabilities of the former CSFR, Slovakia received a Stand-By Loan and a Contingency a Compensatory Financing Facility (CCFF). During the first two years of independence, Slovakia's liabilities towards the IMF were extended by two new credits - the Systemic Transformation Facility (STF) and the Stand-By Loan II. At the end of October 2000, according to the resolution of the Slovak Government and a decision of the Bank Board of the Národná banka Slovenska, the Systemic Transformation Facility was repaid whereby Slovakia paid back all its liabilities towards the IMF. The Slovak Republic achieved the convertibility of the Slovak Koruna (SKK) in the operations on the current account of the balance of accounts according to the Article VIII of the Articles of Agreement on 1 October 1995. Since 2005 Slovakia has actively participated in the IMF Financial Transaction Plan (FTP). The FTP is a mechanism through which economically strong IMF member countries lend money to member countries with a problematic balance of payments.

A Borrowing Agreement between the Slovak Republic and the IMF became effective on 4 September 2013. On the basis of this agreement the Slovak Republic shall provide a loan to the IMF up to the equivalent of EUR 1.56 billion.The Agreement is a part of the European Union's commitment declared in December 2010, to provide financial support to the IMF lending capacity in the amount of EUR 150 billion. Besides the Slovak Republic, the IMF has signed bilateral borrowing agreements and bilateral note purchase agreements with other IMF members, or their central banks. The Národná banka Slovenska acts as agent and contact person for the Slovak Republic in relation to any issues concerning this Borrowing Agreement with the IMF. In August 2009, the Slovak Republic received 265 Million SDR as part of the general SDR allocation, and in September 2009, it received 75.5 Million SDR as part of the special SDR allocation in the IMF ( SDR Holdings and Allocations for Slovakia ). IMF annually conducts consultations with each member country according to the Article IV of the Articles of Agreement.

These consultations should assess the performance of the economy and submit recommendations for its further development. The Governor of the IMF for Slovakia is Jozef Makúch, Governor of the Národná banka Slovenska. His Alternate is the State Secretary of the Ministry of Finance of the Slovak republic. Slovakia belongs to the Central and Eastern European constituency, together with Austria, Belarus, the Czech Republic, Kosovo, Hungary, Slovenia und Turkey. The Constituency Agreement was signed in July 2012 and is valid for 10 years. Since 1. November 2016 the Executive Director has been Michaela Erbenová (Czech Republic). Eduard Hagara is the representative of the Slovak republic in the IMF as a senior advisor to the Executive Director. The member quota for Slovakia is currently SDR 1,001.0 million, on basis of which Slovakia has been allocated 11,230 votes in the IMF.

For more information about IMF activities related to Slovakia, please refer to: International Monetary Fund Board Set to Review Lagarde's French Legal Problems International Monetary Fund Board Set to Review Lagarde's French Legal Problems World | Agence France-Presse | Updated: August 29, 2014 00:44 IST EMAIL COMMENTS International Monetary Fund Chief Christine Lagarde Washington: The International Monetary Fund board will meet "as soon as possible" to review chief Christine Lagarde's situation after being put under formal investigation in France, an IMF spokesman said on Thursday. "It's clearly going to be very soon, as soon as possible," said spokesman Gerry Rice at a news conference, without giving a precise date. A Paris court placed Lagarde under formal investigation earlier this week for alleged "negligence" in a 2008 graft case dating back to when she was a French finance minister. The IMF board of executive directors, representing the global lender's 188 member states, was expected to again support the managing director, who has led the Fund since July 2011. "The board has been briefed on this matter on a regular basis...

and on each of those occasions they have expressed confidence in the ability of the managing director to effectively carry out her duty," Rice said. The spokesman emphasized that Lagarde had said she had no intention of resigning. He added that she was back at work at the IMF and would brief the board on the matter. "We should be careful. There are no charges that have been made against the managing director," Rice said. "There's an allegation." In France, being placed under formal investigation is the nearest equivalent to being charged, and occurs when an examining magistrate decides there is a case to be answered. But at this stage under French law, the judge may decide to remove Lagarde from being under investigation, and she would not face prosecution. Lagarde said Wednesday she would appeal the court decision, saying it was "totally without merit." The negligence allegation relates to her handling of a 400-million-euro ($527 million) state payout to disgraced French tycoon Bernard Tapie in 2008. Lagarde referred the dispute between Tapie and partly state-owned bank Credit Lyonnais to a three-member arbitration panel that ruled in favor of Tapie and ordered the payout.

According to Rice, it is the first time in the 70-year history of the IMF that its leader has been placed under investigation by the person's native country for actions made before taking the post. Lagarde's predecessor, French politician Dominique Strauss-Kahn, was forced to resign in 2011 following accusations he sexually assaulted a hotel maid in New York. What Exactly Does the IMF Do? | Fox Business What Exactly Does the IMF Do? What Exactly Does the IMF Do? Published May 17, 2011 The arrest of Dominique Strauss-Kahn, the managing director of the International Monetary Fund , has thrown the spotlight onto an organization that despite its growing influence remains relatively unknown to many Americans. Continue Reading Below While shocking, the charges of criminal sexual acts and attempted rape against Strauss-Kahn may have created fewer shockwaves in the U.S. had it not been for the growing role of the IMF since the global financial crisis. After all, the 62-year-old Frenchman was the guy negotiating the controversial bailouts of Greece and Ireland and his absence creates serious uncertainty in Europe.

“It’s got all the key elements of power, money and sex,” said Bill Bartmann, CEO of Bartmann Enterprises and author of Bailout Riches. “The magnifying glass will stay on the IMF. That’s a good thing. Transparency and full disclosure usually leads to better activity.” So what exactly does the IMF do? The IMF strives to be the world's financial firefighter. It deploys emergency loans in an effort to put out economic fires around the world, everywhere from emerging countries in Asia and Latin America to developed ones in Europe. The IMF also monitors economic and financial developments and provides technical assistance and training. IMF Influence Ebbs and Flows The IMF receives funding from its 187 member countries, but the bulk of the cash comes from the richest countries: 17.4% from the U.S., 6.5% from Japan, 5.6% from Germany, 4.2% from France and 4.2% from the U.K. Smaller economies like New Zealand and Peru contribute less than 0.3% each.

Continue Reading Below ADVERTISEMENT The IMF’s mission is to work to “foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.” In reality, the IMF is countercyclical: it is truly in demand during bad economic times or when countries run into trouble. Originally formed in July 1944 as an organization to help nations adjust to a world of fixed exchange rates, the IMF searched for direction after President Richard Nixon took the U.S. off the gold standard in 1971 and the fixed exchange rate system vanished. “It is an institution that has waxed and waned in its importance,” said Douglas Holtz-Eakin, former director of the nonpartisan Congressional Budget Office. But the IMF was right in the middle of the East Asian financial crisis in the late 1990s when South Korea, Malaysia and Thailand all faced troubles. As the global economy boomed in the middle of last decade, the IMF again took a back seat and even had to make serious cutbacks to adapt to the changed environment.

Its purchases and loans to member nations shrank in 2007 to $1.29 billion, down from $26.58 billion in 2002, according to IMF data. The global financial crisis and especially the European debt mess changed all of that, putting a fresh premium on capital and the expertise of the IMF. Creditor countries agreed to triple the IMF’s lending capacity to $750 billion and its annual disbursements to member nations shot up to $22.04 billion in 2009 and $21.18 billion last year. “It was struggling for a role. Lo and behold, up pops Greece and Portugal and Ireland,” said Holtz-Eakin, noting the fixed exchange rate euro-zone countries have. “It was right back in its sweet spot.” Despite some calling for the European Union to solve its own problems, the IMF has been heavily involved in the debt mess there, becoming the bailout source for Greece and Ireland. Leaders have found it more politically palatable to use the IMF as an intermediary, instead of giving cash directly to struggling neighbors. Of course, the IMF doesn’t just loan out money -- it demands strict conditions aimed at changing the fiscal conditions of troubled countries.

“The IMF is not just an ATM,” said Cam Harvey, a finance professor at Duke. “Many countries don’t like this because it infringes on their sovereignty, but they don’t have any choice.” Power Struggle Ahead? The likely departure of Strauss-Kahn has created new uncertainty in the European debt crisis because he played a pivotal role, supporting the bailout of Greece and recently pushing for even more money for Athens. The IMF also signed off on another $2.24 billion to Ireland on Monday. Most observers doubt the absence of Strauss-Kahn will significantly impact the IMF’s current stance in talks to rescue troubled European countries. “We would like to stress again that the change in leadership at the IMF is expected to have no impact on IMF policies regarding the euro zone periphery,” Win Thin, global head of emerging markets strategy at Brown Brothers Harriman, wrote in a note. Some believe the incident may create an opening for Europe to attempt to solve the crisis on its own. On Tuesday a European Union official for the first time acknowledged Greece may need to restructure its debts. “It’s not like [Strauss-Kahn] was going to wave a magic wand,” said Harvey. “It has to come from within Europe. He would have been an asset at the table.

Him not being there is not going to throw anything into disarray.” Still, it is unclear who would replace Strauss-Kahn assuming he is forced to resign or is ousted. After Strauss-Kahn’s arrest Sunday night, the IMF tapped American and former JPMorgan Chase ( JPM ) exec John Lipsky to become its managing director. Yet Lipsky, who was previously first deputy managing director, had already announced his intent to leave the IMF at the end of August. The power vacuum at the IMF may create a struggle between emerging market nations that have sought a greater voice and traditional powers in Europe and North America. A number of individuals have been mentioned as possible replacements, including French Finance Minister Christine Lagarde, former Turkish finance minister Kemal Dervis, former South African finance minister Trevor Manuel and others. In any case, the IMF is likely to continue working to put out financial fires. Thin said, “The IMF is likely thrilled to be back in business and relevant again, and it will continue to play a big part in current and future rescue programs in both [developed markets] and [emerging markets], regardless of who heads it." What do you think?

The International Monetary Fund (IMF) - Council on Foreign Relations Council on Foreign Relations Author: Jonathan Masters , Deputy Editor Updated: October 9, 2013 See More of the Most Viewed Introduction Since its inception in July 1944, the International Monetary Fund (IMF) has undergone considerable change as chief steward of the world's monetary system. The IMF is officially charged with managing the global regime of exchange rates and international payments that allows nations to do business with one another. The Fund recast itself in a broader, more active role following the 1973 collapse of fixed exchange rates, and has since received both criticism and credit for its efforts to promote financial stability, prevent crises, facilitate trade, and reduce poverty. In 2010, the IMF catapulted back onto the international stage as the European sovereign debt crisis unfolded, and once again, the organization's fiscal firefighting prowess is in high demand. Some economists claim the Fund is in the midst of a major transformation, citing its vast expansion of lending capacity, governance reform, and the move away from free market fundamentalism.

However, others suggest the IMF must go further in implementing changes that will improve the plight of the world's poor and guarantee the Fund's relevance in a shifting global economy. A Post-War Financial Order Forty-four allied nations convened at the Bretton Woods Conference in 1944 to establish a post-war financial order that would facilitate economic cooperation and prevent a rehash of the currency warfare that helped usher in the Great Depression. The new regime was intended to foster sustainable economic growth, promote higher standards of living, and reduce poverty. The historic accord founded the twin institutions of the World Bank and the IMF, and required signatory countries to peg their currencies to the U.S. dollar. However, the system of fixed exchange rates broke down in the late 1960s and early 1970s due to an overvaluation of the U.S. dollar and President Richard Nixon's decision to suspend the greenback's convertibility into gold. Unlike the World Bank , which was designed as a lending institution focused on longer-term development and social projects, the IMF was conceived as a watchdog of the monetary and exchange rate policies vital to the shared prosperity of the global community.

The IMF is akin to a credit union that permits its membership access to a common pool of resources—funds that represent the financial commitment or quota contributed by each nation (relative to its size). In theory, members with balance-of-payments trouble seek recourse with the IMF to buy time to rectify their economic policies and restore economic growth. The Fund pursues its mission in three fundamental ways: 1) Surveillance. A formal system of review that monitors the financial and economic policies of member countries to ensure they are living within their means—tracking developments on a national, regional, and global level. In this process, IMF officials consult regularly with member countries and offer macroeconomic and financial policy advice. 2) Technical Assistance. Practical support and training directed mainly at low- and middle-income countries to help manage their economies (e.g., providing advice on tax policy, expenditure management, monetary and exchange rate policy, financial system regulation, privatization, trade liberalization, etc.). 3) Lending. Giving short- to mid-term loans to member nations that are struggling to meet their international obligations. Loans (or bailouts) are provided in return for implementing specific IMF conditions designed to help restore the macroeconomic dynamics conducive to sustainable growth.

The IMF was conceived as a watchdog of the monetary and exchange rate policies vital to the shared prosperity of the global community. The Crisis Management Role The IMF is often referred to as the world's " financial crisis firefighter ," called upon by member countries to help fight crippling sovereign debt and prevent contagion from spreading through the global financial system. Historically, much of the Fund's work has been done in developing countries. However, the 2008 global financial meltdown has required major interventions in advanced European economies such as Iceland, Ireland, Greece, and Portugal. A member country (there were 188 members in 2013) typically summons the IMF when it can no longer finance imports or service its debt to creditors—a potential crisis. The Fund will extend the government a short-term loan and help organize a new debt-repayment schedule that the country is able to manage. In exchange, the member agrees to implement a program of IMF reforms designed to rectify its balance of payments and restore foreign exchange reserves in its central bank. The lending conditions are designed not only to guarantee the repayment of loans, but also to ensure the money borrowed will be spent in line with the stated economic objectives.

The IMF cannot force its will on member countries; countries accept the Fund's conditioned financial assistance on a voluntary basis. The IMF and Its Discontents There have been a number of vocal critics of the IMF over the years. In his 2002 book Globalization and Its Discontents, Nobel prize-winning economist Joseph Stiglitz denounced the Fund as a primary culprit in the failed development policies implemented in some of the world's poorest countries. He argues that many of the economic reforms the IMF required as conditions for its lending—fiscal austerity, high interest rates, trade liberalization, privatization, and open capital markets—have often been counterproductive for target economies and devastating for their local populations. Stiglitz cites the flawed program of privatization in post-communist Russia—which helped enrich a corrupt oligarchy —and the elimination of food subsidies for the poor in Indonesia—which sparked food riots in 1998 . Both policies were enacted at the behest of the IMF. "The institution does not really claim expertise in development," Stiglitz writes.

"Its original mandate is supporting global economic stability, not reducing poverty in developing countries—yet it does not hesitate to weigh in, and weigh in heavily, on development issues." The Fund has also been criticized on the basis of overreach or "mission creep." William Easterly makes this case in his 2006 account of the historic failures of Western aid to the undeveloped world, The White Man's Burden. While he acknowledges some IMF successes in firefighting financial crises in countries like Mexico (PDF) in the mid 1990s and the East Asian Crisis of 1997-98 , he criticizes many of Fund's interventions in severely impoverished countries, particularly in Africa and Latin America, as overly ambitious and intrusive. In addition, he describes many of the Fund's loan conditions and technical advice as out of touch with ground-level realities. The IMF is routinely identified with economic hardship and political ferment because it is only in times of crisis that its services are sought. Measuring 'Success' Yet, the IMF is routinely identified with economic hardship and political ferment because it is only in times of crisis that its services are sought. It is often the only organization equipped for such intervention.

Evaluating the Fund's success over the past sixty-plus years is a difficult and often subjective task. As Harvard economist Benjamin M. Friedman wrote in the New York Review of Books in 2002, "We cannot reliably know whether the consequences of the IMF's policies were worse than whatever the alternative would have been." Some economists characterize the Fund's performance in the Asian Financial Crisis of 1997-98 as a success. "The [IMF's] early mistakes were corrected and proper policies were put in place," says Steven Dunaway [PDF], a former deputy director of the IMF's Asia and Pacific department. "The result was that the crisis countries recovered rather quickly, and the economic reforms laid the foundation for sustained strong growth during the 2000s." Others point to the Fund's role in Brazil in 2002 as positive—an intervention where an early recovery allowed IMF loans to be repaid ahead of schedule. The 2008 global financial meltdown and the European debt crisis catapulted the IMF back into the limelight after years of declining relevance. Many economists, including those at the IMF itself, claim the Fund's core competencies continue to lie in the surveillance of macroeconomic indicators and crisis prevention.

However, in a January 2010 report, the Fund's Independent Evaluation Office said "in the international dimensions of its surveillance and other work, where one would expect the IMF to excel, effectiveness and quality were not rated well." In a February 2011 evaluation on IMF surveillance in the lead up to the financial crisis, the evaluation office writes: "The IMF provided few clear warnings about the risks and vulnerabilities associated with the impending crisis before its outbreak," adding that IMF "surveillance paid insufficient attention to risks of contagion or spillovers from a crisis in advanced economies." Ralph Bryant at the Brookings Institution stresses the Fund's continued value despite these shortcomings: "We still need an organization that can do multilateral surveillance and act a bit like an adjustment referee—like a traffic cop for the world. We need the cooperation catalyst function of the IMF." The Carnegie Endowment's Uri Dadush says the IMF is in the middle of a "very big transition," stressing three indicators: the massive expansion of the Fund's lending capacity; the moderate increase in the Fund's representation of developing countries; and a shift away from traditional economic approaches, such as fiscal austerity.

Revival and Reform One decade into the new century, "emerging markets have become the more stable part of the world economy," says CFR's Sebastian Mallaby . "The IMF's main programs are now in Europe, which is a major reversal." This shift in fortunes is epitomized by the IMF's intervention in Greece, where it joined eurozone countries in pledging an unprecedented $163 billion bailout package for Athens in May 2010, followed by a second loan of $178 billion in October 2011. (IMF contributions were roughly $40 billion and $37 billion respectively.) Two aspects of the Greek intervention signal a more assertive IMF. According to an August 2010 Congressional Research Service report [PDF], the Greek bailout marks the first time the IMF has lent to a eurozone country since the common currency was created in 2002.

Second, the size of the assistance package relative to Greece's IMF membership contribution (usually limited to 600 percent) is extraordinary: at 3,200 percent, it is the "largest access of IMF quota resources granted to an IMF member country." The Fund also expanded certain tools for crisis prevention in the wake of the meltdown, announcing in August 2010 the establishment of a "Precautionary Credit Line" for those countries with sound financials facing only moderate vulnerabilities that do not qualify them for other lending. This was later replaced with the " Precautionary and Liquidity Line ." Following its annual meeting in April 2012, the Fund announced roughly $430 billion in new member commitments, nearly doubling the institution's capacity to lend should the European debt crisis deteriorate. Some economists credit former managing director Dominique Strauss-Kahn, who departed the Fund amid scandal in May 2011, with critical reforms and adroit leadership in the Fund's transition.

Longtime IMF critic Stiglitz commended Strauss-Kahn in 2011, claiming that he "reestablished the credibility of the institution," and "reasserted the role of economic science, including Keynesian economics." However, others warn that some reforms may be temporary. In an April 2010 report on IMF crisis response (PDF) , Eurodad and the Third World Network, two non-governmental organizations focused on development issues, found that despite claims of greater flexibility for low-income countries under IMF lending, "the Fund's macroeconomic policy design shows the same old set of policy priorities, including low fiscal deficits, low inflation, flexible exchange rates, and financial liberalization." The Fund continues to be a target of criticism for its involvement with impoverished nations despite several initiatives addressed at this constituency. In an effort to help some nations reach the Millennium Development Goals—benchmarks set at the UN to raise basic standards of living for the poorest countries—the IMF announced a program of debt relief for eligible countries in 2005.

In 2009, the Fund also announced reforms to its lending conditions to low-income countries that would allow for greater country-specific tailoring and "enhanced focus on poverty and growth." However, Oxfam warned in a June 2011 memorandum (PDF) that "if the IMF does not reform its conditionality much more fundamentally, it will increasingly be seen as responsible for punishing the world's poorest citizens." Critics have also raised questions with regard to the Fund's governance and transparency. For decades, a long-standing "gentlemen's agreement" between Europe and the United States has guaranteed the helm of the IMF to a European and that of the World Bank to an American—a situation leaving little recourse for ascendant emerging economies. In June 2011, former French finance minister Christine Lagarde was chosen to succeed Strauss-Kahn—a choice that epitomized the tensions over governance. "The IMF cannot maintain its legitimacy unless it allows candidates from the world's most dynamic economies a fair shot at the top job," wrote Mallaby in a May 2011 op-ed in the Washington Post.

"Most of the world's growth has come from emerging economies; but it is less well appreciated that this is likely to continue for some time." Additional Resources This IMF fact sheet explains how the Fund responded to the global economic crisis. This March 2014 report from the nonpartisan Congressional Research Service examines pending IMF reforms , including increasing the influence of emerging economies at the Fund. In The Battle of Bretton Woods , CFR's Benn Steil explains how the blueprint for the postwar economic order was drawn. This CFR backgrounder profiles the World Bank Group , the IMF's sister organization. More on this topic from CFR DRACHMA | The vision behind the NEW Greek Banknotes THE OFFICIAL 2015 EDITION DRACHMA The vision behind the new Greek banknotes Angela Merkel Angela Dorothea Merkel (born 17 July 1954) is a German politician and a former research scientist who has been the leader of the Christian Democratic Union (CDU) since 2000 and the Chancellor of Germany since 2005.

Wolfgang Schäuble Wolfgang Schäuble (born 18 September 1942) is a German politician of the Christian Democratic Union (CDU) who has served as Germany’s Federal Minister of Finance in the second and third Merkel cabinets since 2009. Christine Lagarde Christine Madeleine Odette Lagarde (born 1 January 1956) is a French lawyer and Union for a Popular Movement politician who has been the Managing Director (MD) of the International Monetary Fund (IMF) since 5 July 2011. Jeroen Dijsselbloem Jeroen René Victor Anton Dijsselbloem (born 29 March 1966) is a Dutch politician of the Labour Party (PvdA). President of the Eurogroup and the Board of Governors of the European Stability Mechanism (ESM) since 2013. proudly presented by

Question: Since July 2011, who has been the Managing Director of the International Monetary Fund?
Answer: CHRISTINE LAGARDE